tag:blogger.com,1999:blog-5524682876220396502.post1964041818528123661..comments2024-03-27T06:56:10.255+00:00Comments on Broad Oak Magazine: Housing: have we reached the "point of maximum pessimism"?Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5524682876220396502.post-90437520716176787952008-07-04T18:40:00.000+01:002008-07-04T18:40:00.000+01:00Yes, I'm more of the mind that houses ought to be ...Yes, I'm more of the mind that houses ought to be priced at 3-4 times earnings, in which case the sooner we find a buyer for ours, the better.<BR/><BR/>But Keynes observed that "wages are sticky downward" and so, I think, are house prices. Owners won't be keen to realize a loss, so I expect a shrinking of the market as people sit tight, and the result should be stagnation while wages catch up. Against that is the possibility that real (post-inflation) wages may continue to fall, since power and food inflation are externally influenced and our government's handling of the economy means we're not making much that the rest of the world wants to buy. So it could be a very long stagnation, and still a fall in real terms.<BR/><BR/>Does that make sense, sound right, to you?Sackersonhttps://www.blogger.com/profile/09410040031410954403noreply@blogger.comtag:blogger.com,1999:blog-5524682876220396502.post-17330464531493879782008-07-04T15:53:00.000+01:002008-07-04T15:53:00.000+01:00Blanche Evans of Realty Times says "I will say any...Blanche Evans of Realty Times says "I will say anything to keep myself in a job right now"Anonymousnoreply@blogger.com